Tuesday, January 22, 2013

Rising trade deficit to hit economy

Ministry of Commerce and
Supplies today has stressed on the need to move forward bringing all pending
issues on table to tackle widening trade gap with its southern and northern
neighbours.

Concluding that the
trade deficit between the two countries will have adverse impact in the
country’s economy, the ministry has asked experts to float ideas on reducing
the balloning trade deficit.

India is a major trade
partner of Nepal, an official at the ministry said, adding that the country had
a total trade worth Rs 372.30 billion — export of Rs 50.93 billion and import
of Rs 321.34 billion — with India alone in the fiscal year 2011-12.

The trade deficit with
India stood at Rs 270.41 billion, which is 63.8 per cent of the total trade
deficit of the country, the ministry data revealed.

Trade deficit with the
northern neighbour China has seen huge increase in recent years. The
country has imported goods worth Rs 53.90 from China in 2011-12 against Rs
46.38 billion a year ago in 2010-11. But exported too less.

The government should
identify exportable items and promote exporters to be engaged in trade
activities, the official at the ministry said, adding that simplification of
modalities for traffic-in transit and remove of non-tariff barriers and
administrative hassles will help increase exports and substitute imports that
have also been sky rocketing in recent years mainly fuelled by remittance.

The government should
put its effort in improving the export volume of agricultural goods including
leather, ginger, tea, herbs, toothpaste, textile and handicrafts, the official
opined.

India, USA, Bangladesh,
China, Bangladesh, Germany, UK, Japan, France, Italy are the main importers, he
said, suggesting the government to identify new destinations to expedite export
of Nepali goods.